Hi all,
I am wondering if someone can help me. I bought an apartment in Feb 2017 for $500k and lived in there from day 1. I am thinking of leaving Australia for Europe for 5-6 years. 1. Do I need to come back to sell my apartment if it is prime place of residence? Will I be taxed? 2. when I come back in 5 years , how many months/years do I need to live in the property before I sell it and have a full exemption on cgt?
thank you!
Hi @MilaGo,
No, you don't have to sell your residence.
If you're moving overseas for some time, you likely will cease being a resident for tax purposes. Because of this, you likely won't be eligible for the main residence exemption for that time. You can read more about it on foreign residents and main residence exemption.
This means that if you don't sell the residence before becoming a foreign resident, you will be liable for CGT during the period you are a foreign resident for, whether you sell the property two days into being a foreign resident, or whether you sell the property long after returning to Australia and becoming a resident for tax purposes again.
For the period of your foreign residency for tax purposes, you will be liable for CGT on the property.
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